Posted by Baltimore BirdDog on April 19, 1999 at 09:30:28:
Mike,
Seems like there’s a mix-up. I’d be interested in hearing the answer to Paul’s question about the appraisal, though. Thanks.
-Jeremy
Buy em cheap before the body is cold! Gotta love the heirs to these estates - Posted by Mike Oldfield
Posted by Mike Oldfield on April 19, 1999 at 06:40:13:
We offer 50¢ on the FMV dollar for real estate to heirs of all estates. Our broker brings us a ready supply of estate owned property. Many heirs in our rural town have the money spent before their loved ones bodies are cold. We have seen heirs fighting over the lawn furniture and garden hose while their dead mother was still in the house.
Once we take title, we have good luck converting the line of credit to a permanent mortgage. This is very easy when you pay 50% of FMV.
You will surprise yourselves at how often heirs to estates will settle for as much as they can get immediately. They dont want to wait for their cash. THey want it NOW!
Dont overlook “human” nature (I use the term lightly). These crazy heirs can be a quiet little goldmine if you jump on them all. The more disgusting the greedy little heirs the better.
Good luck creative collegues,
Mike Oldfield
P.S. Please accept my apology for those who may be offended. I speak the truth. Sorry it’s so harsh.
Re: Buy em cheap before the body is cold! Gotta love the heirs to these estates - Posted by Paul OK
Posted by Paul OK on April 19, 1999 at 07:01:27:
Does the judge not demand an appraisal of the property and she/he decides if you will buy at your price?
Re: Buy em cheap before the body is cold! Gotta love the heirs to these estates - Posted by Mike Oldfield
Posted by Mike Oldfield on April 19, 1999 at 07:34:38:
Yes but you missed the strategy. We bought the mortgage not the property. The property taxes per the mortgage document become part of the principle balance of the mortgage so the mortgage balance was $141,000. The property appraised at $150,000. The bankruptcy trustee figured that after selling costs of 10% (for commercial) were factored in there was no equity for him to satisfy debts with so he filed an abandonement order shortly after these other events occured. Owning the first mortgage puts us in the first position ahead of the bankruptcy. We did not buy the property we bough the mortgage. Then the seller signed over the deed in exchange for cash.
Re: Buy em cheap before the body is cold! Gotta love the heirs to these estates - Posted by Irwin
Posted by Irwin on April 20, 1999 at 21:37:16:
You started the thread talking about buying from heirs of deceased persons, and then digressed into buying first mortgages on property of people in bankruptcy. Decedent’s estates and bankrkuptcy are dissimilar proceedings. You can’t be using the same procedure for both. Maybe you can clear this up for us.